IndusInd Bank share price gained over 9% in early trade today after a report said US-based hedge fund Route One Investment is likely to raise stake in the private sector lender. Share price of IndusInd Bank rose 9.38% intraday to Rs 577 on BSE. IndusInd Bank stock has gained 17.61% in last three days. The large cap stock was top gainer on Sensex and Nifty. Later, the stock ended 5.06% higher at Rs 552.85 on Sensex. On Nifty, the stock closed 4.5% higher at Rs 550.
Share price of IndusInd Bank has gained 17.61% in the last three days. However, it has lost 62% since the beginning of the year and fallen 61% in the last one year. IndusInd Bank share price currently trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
Market cap of the bank rose to Rs 39,526 crore. In one month, the share has gained 26.39%. Total 24.64 lakh shares changed hands amounting to turnover of Rs 138.02 crore. On Nifty, the share gained 9.72% to Rs 577.50 compared to the previous close of Rs 526.30.
Currently, Route One Investment Company has a 5.41 per cent stake in IndusInd Bank through two entities but plans to hike it to around 9.9 per cent through preferential allotment of shares, enabling the bank strengthen its Balance Sheet and raise capital, a Moneycontrol report said.
"A few other investors may also join Route One and participate in what could potentially be a wider fundraising round through the preferential allotment route, under which the bank could dilute a combined stake of 10 percent to all parties. Based on the current market capitalisation of IndusInd Bank, a 10 per cent stake is valued at nearly Rs 3,650 crore," the report said.
The report by Moneycontrol said that RBI was approached for permission and Route One Investment Company has obtained the requisite approval from the regulator for the stake hike.
Meanwhile, Sensex and Nifty were trading muted after four days of rally. While Sensex fell 26 points to 36,648 Nifty was trading 1 point higher at 10,799. The rupee slipped 5 paise to 74.98 per US dollar on Wednesday, tracking weak domestic equities and strengthening American currency.